Short-Term Business Loan
When business owners think of loans for their business, they think of 5-10 year traditional loans from the local bank with the drive-through window and complimentary lollipops. These loans are few and far between these days. They don’t make sense for meeting short-term needs. And traditional bank loan approval rates are lower than ever.
Reasons for a Short-Term Business Loan
– Inventory available at a discount for a limited time
– Time sensitive marketing opportunities
– Outstanding Invoices
– Seasonal Hiring
– Cash-Flow Issues
– Equipment available at a discount for a limited time
– Highest Approval Rates
– Seasonal Trends
Benefits of a Short-Term Business Loan
– Simple Application Process – Very little documentation required
– Minimal Credit Requirements – Eligibility is not based on credit score
– Ease of Accessing Capital – Working capital available in a few days
– Builds Business Credit – Reporting to business credit bureaus
– Future Opportunity – Larger amounts, longer terms, better rates
– Interest is Tax Deductible – Enough said!
– Minimum 9 months in business
– 100k minimum annual sales
– 500 minimum FICO (Credit Score)
– Have a plan of use for the funds
If you needed 50k for inventory for the upcoming holiday season, why would you set your business up to still be paying on that inventory three years down the road? The sensible approach in this situation is to pay that 50k off as soon as possible, in a short amount of time. Short-term business loans are a very popular tool for businesses that need to quickly take advantage of opportunities that arise, getting in and out, then moving on to the next opportunity.
Short-Term Lending is a great way to get the working capital your business needs to function at its best potential. In a very short amount of time you’ll be able to use this money to capitalize on opportunities for growth, expansion, and maximize your return on investment. You will also establish a banking relationship that will benefit your business long term while satisfying the needs of the business short term.